Borrower Defense Student Loan Settlement
U.S. Department of Education · Federal student loans and borrower-defense loan-discharge applications · Settlement Reached
About this case
Borrowers alleged that the U.S. Department of Education improperly delayed or rejected borrower-defense applications involving claims that colleges misrepresented employment prospects, credit transferability, or post-graduation earnings. The matter reached a settlement in 2022, and the U.S. Court of Appeals for the Ninth Circuit issued a July 17 ruling rejecting the department’s request for additional time to process remaining claims; the settlement has generated more than $23 billion in loan discharges and refunds.
Case overview
- Defendant company
- U.S. Department of Education
- Product or service
- Federal student loans and borrower-defense loan-discharge applications
- Case status
- Settlement Reached
- Lawsuit type
- Consumer
- Reported harm
- Misrepresentation
Participation information
2022 Borrower-Defense Claim Submission Window
The settlement allowed additional borrowers to submit borrower-defense claims during a designated 2022 window concerning alleged misconduct by educational institutions.
The article does not provide current claim-submission instructions.
- Type
- Settlement Claim
- Status
- Closed
- Payout
- Potential loan discharges or refunds under the settlement terms.
- Reported proof requirement
- Unclear
Automatic Loan Relief for Covered Borrowers
The settlement provides for automatic loan relief for borrowers who attended institutions included on the settlement’s covered list, as described in the article.
The article states that relief is to be provided automatically and does not identify an action required from covered borrowers.
- Type
- Other
- Status
- No action required
- Payout
- Loan forgiveness and related refunds under the settlement.
- Reported proof requirement
- No
Sources
- Borrower Defense Student Loan Settlement
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